Business Loan

Business Loan Repayment Calculator

Calculate your monthly business loan repayment. Compare principal-and-interest vs interest-only. Calculate your monthly business loan repayment, total interest, and payoff timeline. Compare principal-and-interest vs interest-only options for Australian business loans.

P&I vs interest-only Total interest cost Payoff timeline 2026 rates

Key Facts

Secured rates (2026) ~6–12% p.a.

Unsecured rates (2026) ~9–20%+ p.a.

Interest-only period Typically 1–5 years

Interest deductible Yes, for business use

Collateral required Secured loans only

01 —INPUTS

Loan amount (AUD)

Annual interest rate (%)

Loan term (years)

Repayment type

Principal + InterestInterest only

Interest-only loans have lower repayments but do not reduce the principal.

02 —RESULTS

Monthly repayment2,027.64

Total interest21,658.37

Total paid (principal + interest)121,658.37

Payoff time5.0 years

P&I vs interest-only

Interest-only loans give you lower monthly payments during the IO period but mean you still owe the full principal at the end. When the IO period ends, repayments increase as principal repayments begin. Use the borrowing power calculator to see how much you can borrow based on your monthly budget.

Cashflow impact

Model how the monthly repayment affects your net cash position and break-even revenue using the cashflow impact calculator.

Extra repayments

Making extra repayments reduces total interest and shortens the loan term. Use the extra repayment calculator to see the savings.

Common questions

What is the difference between secured and unsecured business loans?

Secured business loans require collateral (property, equipment, or inventory) and typically offer lower interest rates. Unsecured loans do not require collateral but have higher rates and stricter eligibility criteria. Most Australian lenders offer both options depending on your business profile and borrowing amount.

How do interest-only periods work for business loans?

During an interest-only period (typically 1–5 years), you only pay the interest on the loan without reducing the principal. This lowers your monthly repayment but means you do not build equity in the asset. When the interest-only period ends, repayments increase as principal repayments begin. Interest-only loans are common for commercial property and asset finance.

What are typical business loan interest rates in Australia?

As of 2026, secured business loan rates typically range from 6% to 12% p.a. depending on the lender, security, and your business's credit profile. Unsecured rates range from 9% to 20%+. Equipment finance and commercial property loans tend to be at the lower end, while working capital and cash flow loans are at the higher end.

Business Loan Repayment Calculator

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